Dax Technical Analysis 10/10/2016

Good morning traders!

Ignoring Brexit (and the GBP), Oil and rate hikes seems to be dominating speculation at the moment and it seems that traders are trying to figure out whether the Fed is going to hike interest rates in December or not. Friday’s NFP was not exactly a memorable release and the markets were pretty underwhelmed so we will probably find out more over the next few days with many eyes focused on the various speeches.

So what can we expect this week on the Dax?

Well we tested the 10450 level, for the third time and we have now bounced from there, through the daily pivot and up towards 10550 (at the time of writing). I shorted from 10490, expecting us to continue lower through the 10450, so I will wait for another opportunity.

On the daily chart we are still bearish below 10644, the spinning top candle from Thursday at the top of the channel still dominates the technicals in my opinion and we have retraced around 61.8% of the Friday candle. A break below 10440 opens up a move down towards the next layer of support (10350 and 10265). The H4 chart is pretty messy, a lot of sideways movement, but technically still bearish with lower lows and lower highs going back to the beginning of September.

The hourly chart shows the support and resistance levels and 10465 is on that has held today so far, after fooling me into believing it was ready to go. The m30 chart shows us breaking through the weekly pivot with the weekly R1 at 10606, but nothing interesting to point out.

As far as divergence goes, I can’t see any obvious signals. As far as volume goes, I again can’t see any obvious signals. So looks like patience is key. The 5 minute chart is shaping up for a mini correction of the recent bounce from 10450, but I am just going to wait.